Renewable Energy Development Plan

Presented in Japan-Indonesia Business Forum for Energy Efficiency, Conservation and Renewable Energy Hotel Indonesia Kempinski

Jakarta, 14th November 2018

Directorate of Corporate Planning

PT PLN (Persero)

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Content

Electricity Demand Forecast 2

Power Development Plan 3

Fuel Mix Projection 4

Renewable Energy Development Plan 5

Current Renewable Energy Development 1

Renewable Energy Procurement 6

Renewable Energy Investment 7

PLN Company Profile Up to Jan-

55.876

19.065

122.706

49.234

114.631

21.632

14.453

924

6.255

8,50

68.374

Installed Capacity MW 57.469 55.926 54.665 50.859 49.591

Sales GWh 133.440 223.134 21.600 202.846 198.602

Installation

Power Contracted MVA 126.610 122.018 114.266 106.582 100.031

Transmission Lenght kms 50.613 48.901 46.266 41.683 39.910

Substation Capacity MVA 122.370 113.790 108.479 92.651 86.472

Production 151.987 254.403 248.611 233.982 228.553

Own Production GWh 101.856 167.977 166.457 156.631 152.853

Rent GWh 6.339 13.447 17.352 19.841 22.443

Purchase GWh 43.793 72.979 64.802 57.510 53.257

Quality

Network Losses Percentage 9,55 8,76 9,48 9,77 9,71

Number of Customers Thousand

customers 70.019 68.068 64.282 61.157 57.493

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Description Unit Up to Jul

2018 2017 2016 2015 2014

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PLN Electrification Ratio – July 2018

4 Indonesia : 93,3%

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Electrification Ratio

Gorontalo

Information

Electrification Ratio (%)

Realization 2017

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Target of Electrification Ratio in RUPTL (1/2)

No. Provinsi 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027

1 Aceh 97,4 99,3 99,9 100,0 100,0 100,0 100,0 100,0 100,0 100,0

2 Sumut 98,9 99,4 99,7 100,0 100,0 100,0 100,0 100,0 100,0 100,0

3 Sumbar 93,5 96,3 99,1 100,0 100,0 100,0 100,0 100,0 100,0 100,0

4 Riau 95,3 97,5 99,8 100,0 100,0 100,0 100,0 100,0 100,0 100,0

5 Kepri 85,1 94,5 98,2 99,9 99,9 100,0 100,0 100,0 100,0 100,0

6 Jambi 88,9 92,2 96,0 100,0 100,0 100,0 100,0 100,0 100,0 100,0

7 Bengkulu 96,9 97,9 99,0 100,0 100,0 100,0 100,0 100,0 100,0 100,0

8 Sumsel 93,0 96,0 99,1 100,0 100,0 100,0 100,0 100,0 100,0 100,0

9 Babel 100,0 100,0 100,0 100,0 100,0 100,0 100,0 100,0 100,0 100,0

10 Lampung 94,0 99,2 99,8 100,0 100,0 100,0 100,0 100,0 100,0 100,0

11 Jabar 100,0 100,0 100,0 100,0 100,0 100,0 100,0 100,0 100,0 100,0

12 DKI 100,0 100,0 100,0 100,0 100,0 100,0 100,0 100,0 100,0 100,0

13 Banten 100,0 100,0 100,0 100,0 100,0 100,0 100,0 100,0 100,0 100,0

14 Jateng 98,9 100,0 100,0 100,0 100,0 100,0 100,0 100,0 100,0 100,0

15 DIY 94,9 97,9 100,0 100,0 100,0 100,0 100,0 100,0 100,0 100,0

16 Jatim 95,5 98,2 99,8 100,0 100,0 100,0 100,0 100,0 100,0 100,0

17 Bali 100,0 100,0 100,0 100,0 100,0 100,0 100,0 100,0 100,0 100,0

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Target of Electrification Ratio in RUPTL (2/2)

No. Provinsi 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027

18 NTB 93,5 97,5 100,0 100,0 100,0 100,0 100,0 100,0 100,0 100,0

19 NTT 70,0 77,0 84,3 90,1 96,0 99,9 100,0 100,0 100,0 100,0

20 Kalbar 93,3 96,1 99,1 100,0 100,0 100,0 100,0 100,0 100,0 100,0

21 Kalsel 95,0 97,3 99,6 100,0 100,0 100,0 100,0 100,0 100,0 100,0

22 Kalteng 70,4 81,1 85,7 89,9 93,9 97,8 100,0 100,0 100,0 100,0

23 Kaltim 99,4 99,6 99,7 100,0 100,0 100,0 100,0 100,0 100,0 100,0

24 Kaltara 86,3 90,5 95,2 100,0 100,0 100,0 100,0 100,0 100,0 100,0

25 Sulut 97,5 99,0 99,8 99,9 100,0 100,0 100,0 100,0 100,0 100,0

26 Sulteng 91,5 94,9 98,4 99,9 100,0 100,0 100,0 100,0 100,0 100,0

27 Gorontalo 97,4 98,4 99,0 100,0 100,0 100,0 100,0 100,0 100,0 100,0

28 Sulsel 99,8 99,9 100,0 100,0 100,0 100,0 100,0 100,0 100,0 100,0

29 Sultra 87,7 90,2 92,6 95,1 97,5 100,0 100,0 100,0 100,0 100,0

30 Sulbar 87,3 89,4 91,6 93,7 95,8 97,9 100,0 100,0 100,0 100,0

31 Maluku 92,6 94,8 96,4 98,2 100,0 100,0 100,0 100,0 100,0 100,0

32 Malut 98,9 99,2 99,6 99,9 100,0 100,0 100,0 100,0 100,0 100,0

33 Papua 65,0 77,7 82,7 87,7 92,7 97,7 100,0 100,0 100,0 100,0

34 Pabar 90,4 93,6 96,8 98,1 98,1 98,2 100,0 100,0 100,0 100,0

Indonesia 96,2 98,0 99,1 99,6 99,8 99,9 100,0 100,0 100,0 100,0

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Strategies for Increasing Electrification Ratio

• Developing and monitoring electricity infrastructures projects stated in RUPTL.

• Developing New and renewable energy for remote and isolated areas.

• Encouraging programs of rural electrification in order to achieve 100% rural areas electrified in

2019.

• Enhancing the role of PLN corporate social responsibility (CSR), especially for activities related to

rural electrification.

• Obtaining good corporate relationship with the government for pre-electrification program such as

LTSHE (efficient solar PV lamp) program.

• Working together with local governments in order to develop new and renewable energy projects

and free electricity installment for houses of poor families in all over Indonesia.

Current Renewable Energy

01 Development

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Installed Capacity (June 2018)

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Progress of Renewable Energy Development (June 2018)

Electricity Demand

02 Forecast

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Electricity Demand Forecast 2018-2027

EASTERN INDONESIA

INDONESIA

9,1%

35 78

TWhTWh

SUMATERA

JAVA - BALI

6,1%

177 TWh

301 TWh

8,6%

26 TWh

54 TWh 433

TWh

239 TWh

6,86%

11,2%

35 92

TWh TWh

7,2%

174 TWh

326 TWh

10,8%

26 64

TWhTWh

480 TWh

234 TWh

2017 2026 2018 2027

8,3%

10,1% 8,5%

KALIMANTAN

9,9% 8,4%

NUSA TENGGARA

11,7% 8,6%

SULAWESI

12,1% 9,4%

MALUKU

10,5% 8,7%

PAPUA

Notes:

Blue

Red

: RUPTL 2017-2026

: RUPTL 2018-2027

(Bappenas High Scenario)

Power Development

03 Plan

Comparison Between RUPTL 2017-2026 and RUPTL 2018-2027

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TYPE RUPTL 2017-2026 RUPTL 2018-2027

CFPP 31.935 26.807

CC/GT/GE PP 24.389 14.305

HEPP 13.762 8.283

GeoPP 6.290 4.583

Other RE 1.224 2.046

TOTAL 77.873 56.024

The additional

capacity is lower

from previous

RUPTL due to lower

demand growth.

Decrease thermal

power plant,

especially coal fired

power plant.

Increase other

renewable energy

(wind, solar PV etc.)

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Electricity Infrastructure Development

REGIONAL SUMATERA

Power Plant 15.990 MW

Transmission 20.947 kms

Substation 39.810 MVA

REGIONAL KALIMANTAN

Power Plant 4.599 MW

Transmission 10.430 kms

Substation 5.810 MVA

REGIONAL SULAWESI

Power Plant 4.849 MW

Transmission 8.269 kms

Substation 7.043 MVA

REGIONAL MALUKU & PAPUA

Power Plant 1.540 MW

Transmission 2.599 kms

Substation 1.920 MVA

REGIONAL JAWA, BALI & NT

Power Plant 29.046 MW

Transmission 21.610 kms

Substation 96.841 MVA

INDONESIA

Power Plant 56.024 MW

Transmission 63.855 kms

Substation 151.424 MVA

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Power Plant Development Plan (MW)

Fuel Mix

04 Projection

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Fuel Mix Projection

RE portion in 2018 : 12,4% RE portion in 2025 : 23,0%

Renewable Energy

05 Development

Renewable Energy Criteria

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1. Supply and Demand Balance

2. System Readiness

3. Financing Capability

4. Economic Feasibility

Renewable Energy Development Strategies

• The development of RE power plants shall consider the balance between supply-demand and the

readiness of the system as well as the cost efficiency.

• PLN will utilize the renewable energy resources from water energy resources, geothermal (which include

small scale/modular), biofuel, wind energy, solar energy, biomass and waste, etc., and will support any

effort to create RE-BID (renewable energy based on Industrial Development).

• Particularly for PV, PLN would develop centralized PV to electrify isolated areas that relatively far from

existing grids. These areas could be undeveloped areas, border areas and outermost islands. Hybrid

system (PV, other RE and Diesel PP) would also be developed for areas that still have less than 12

hours electricity, commonly in the eastern part of Indonesia.

• PLN will develop Smart Grid system to increase penetration of intermiten RE and increase reability of

power system. PLN would also develop micro grid (usually using PV) for the areas where distribution

lines will not be developed in 2-3 years ahead.

• PLN will reduce the use of HSD and MFO and encourage the utilization of biofuel.

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Renewable Energy Development Plan

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Renewable Energy Development Plan per

Regional

Total Reg Sumatera : 5.533,6

MW

Total Reg JBB : 360,7

MW

Total Reg JBT : 4.387,6

MW

Total Reg JTBN : 2.352,3 MW Total Reg Kal : 370,1 MW Total Reg Sul : 1.726,5

MW

Total Reg MP : 180,4

MW

Renewable Energy

06 Procurement

Renewable Energy Price and Cost of Production (BPP) 2017 (cent USD/kWh)

www.pln.co.id | 26 Source: Ditjen EBTKE

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Renewable Energy Procurement

Direct Selection Direct Appointment

PLN HQ PLN Regional

Capacity

> 10 MW

1. PLTA

2. PLTBg

3. PLTBm

4. PLTA

LAUT

5. PLT

HYBRID

Capacity

≤ 10 MW

1. PLTA

2. PLTBg

3. PLTBm

4. PLTA LAUT

5. PLT

HYBRID

PLN HQ PLN Regional

> 1. PLTSa

10MW

2. PLTP

≤ 1. PLTSa

10MW

Capacity

Quota

(Intermittent)

1. PLTS

2. PLTB

Note: for Selected Providers (DPT)

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70 Renewable Energy PPA in 2017

Renewable Energy

07 Investment

PLN’s Renewable Energy Investment On Going Projects

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No. Projects Location COD Lender

On Going Projects

1 Rehabilitation of PLTP Kamojang Unit 2-3 West Java 2020 KfW

2 1000 Islands Renewable Energy for Electrification Programme (REEP) phase I in NTT NTT 2021 KfW

3 PLTA Kumbih-3 (3 x 15 MW) Aceh - North Sumatera 2023 KfW

4 Updates of Feasibility Studies of Small Hydropower Plants in Eastern Indonesia AFD

5 Peusangan Hydroelectric Power Plant Construction Project Aceh 2020-2021 JICA

6 Asahan No. 3 Hidroelectric Power Plant Construction Project North Sumatera 2023-2024 JICA

7 Hululais Geothermal Power Plant Project (E/S) Bengkulu 2020-2021 JICA

8 Tulehu Geothermal Power Plant Project (E/S) Maluku 2020 JICA

9 FS and Preparation of Design and Bid Documents for Matenggeng Pumped Storage

Power Project and related Capaicty Building Central Java 2025 World Bank

PLN’s Renewable Energy Investment Pipeline Projects

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* and many more renewable energy development with unallocated funding

No. Projects Location COD Lender

Pipeline Projects

1 PLTP Ulumbu 5 (1x10 MW) & Mataloko 2-3 (2x10 MW) Flores NTT 2021-2023 KfW

2 Sector Loan (PLTA Bakaru+REEP II) South Sulawesi 2019-2024 KfW

3 PLTA Sawangan (2X6 MW) North Sulawesi 2024 KfW

4 PLTM Nua (2X4,4 MW) Seram Maluku 2020 KfW

5 Masang II Hydro Power Plant Development West Sumatera 2023 AFD

6 Hululais Geothermal Power Plant 1 & 2 (2x55 MW) Bengkulu 2020-2021 JICA

7 Additional Loan for Peusangan 1 & 2 Hydroelectric Power (87 MW) Aceh 2020-2021 JICA

8 Matenggeng Pumped Storage Central Java 2025 World Bank

9 PLTA Poko (2x65 MW) South Sulawesi 2022 World Bank

New and Renewable Energy (NRE) Investment

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1. Total investment for the new and renewable energy (NRE) in RUPTL 2018-2027 is

about USD 30 billion, accounted for 32% from the total power plant investment*.

2. PLN encourage private developers to develop NRE, with 77% of those investment

was IPP projects.

3. It’s expected that NRE investment will be cheaper in the future, to reduce electricity

production cost.

4. Government and Lending institutions will have more important roles to reduce the

financing cost to have cheaper investment of NRE.

5. PLN and private developers should have easy access to the cheaper Green Climate

Fund to support NRE development.

6. In the mean time, PLN will continue to strengthen the grid to give more opportunity

for the NRE in the electricity system.

*PLN+IPP investment

Listrik untuk Kehidupan yang Lebih Baik

Thank You

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